Startup period $(1.$e$.,$ all of this happens on January $1)$

a$.$ Finance with $$200,000$;$$20,000$ is contributed by Doreen $($in exchange for $1,000$ shares

of common stock $-100\%$ ownership$)$ and $$180,000$ is borrowed, long$-$term $($with a

'balloon' repayment due in $3$ years$)$ from a bank at $5\%$ annual interest, due annually.

b$.$ Buy equipment, which she thinks will last $6$ years, for $$72,000$ in cash.

c$.$ Sign a $2-$year store lease and pay a $$5,000$ security deposit and $$12,000$ for January $-$

March rent, both in cash.

d$.$ Pre$-$pay a $$12,000$ annual premium for a property $/$ liability insurance policy, in cash.

e$.$ Acquire $$80,000$ of inventory from food suppliers on credit, with payment due in $60$ days

Operating period $($i$.$e$.,$ all of this happens between January $1$ and January $31)$

Sell $70\%$ of the food inventory $($which cost $$56,000)$ for $$82,000,$ receiving $$70,000$ in

cash and the rest is due within $30$ days.

Pay $$60,000$ of the accounts payable for the inventory acquired in step e$)$ above.

Acquire $$60,000$ of additional food inventory on credit, payment due in $60$ days.

Collect $$8,000$ of accounts receivable from customers in step $1)$ above.

Pay $$8,000$ in salaries, in cash, for the period from January $1$ to January $28(4$ weeks$).$

Required:

Provide journal entries for the 'explicit' $10$ transactions.

Provide the necessary "adjusting" journal entries as of January $31($if any$),$ so that the

resulting financial statements are on an "accrual" basis in accordance with U$.$S$.$ GAAP.

Provide the Income Statement for the month of January $($i$.$e$.,$ ending January ${31}^{st}).$

Provide the Balance Sheet as of January ${31}^{st}.$

What is Operating Cash Flow for the month of January $($i$.$e$.,$ ending January ${31}^{st})?$Startup period $($i$.$e$.,$ all of this happens on January $1)$

a$.$ Finance with $$200,000$; $$20,000$ is contributed by Doreen $($in exchange for $1,000$ shares of common stock $100\%$ ownership$)$ and $$180,000$ is borrowed, long$-$term $($with a $$balloon$$ repayment due in $3$ years$)$ from a bank at $5\%$ annual interest, due annually.

b$.$ Buy equipment, which she thinks will last $6$ years, for $$72,000$ in cash.

c$.$ Sign a $2-$year store lease and pay a $$5,000$ security deposit and $$12,000$ for January $$ March rent, both in cash.

d$.$ Pre$-$pay a $$12,000$ annual premium for a property $/$ liability insurance policy, in cash.

e$.$ Acquire $$80,000$ of inventory from food suppliers on credit, with payment due in $60$ days.

Operating period $($i$.$e$.,$ all of this happens between January $1$ and January $31)$

$1.$ Sell $70\%$ of the food inventory $($which cost $$56,000)$ for $$82,000,$ receiving $$70,000$ in cash and the rest is due within $30$ days.

$2.$ Pay $$60,000$ of the accounts payable for the inventory acquired in step e$)$ above.

$3.$ Acquire $$60,000$ of additional food inventory on credit, payment due in $60$ days.

$4.$ Collect $$8,000$ of accounts receivable from customers in step $1)$ above.

$5.$ Pay $$8,000$ in salaries, in cash, for the period from January $1$ to January $28(4$ weeks$).$

Required:

$1.$ Provide journal entries for the $$explicit$10$ transactions.

$2.$ Provide the necessary $$adjusting$$ journal entries as of January $31($if any$),$ so that the resulting financial statements are on an "accrual" basis in accordance with U$.$S$.$ GAAP.

$3.$ Provide the Income Statement for the month of January $($i$.$e$.,$ ending January $31$st$).$

$4.$ Provide the Balance Sheet as of January $31$st$.$

$5.$ What is Operating Cash Flow for the month of January $($i$.$e$.,$ ending January $31$st$)?$